New Delhi – A fresh standoff over digital payments is taking shape in the capital as several merchant groups rally behind a No UPI Day slated for October 2. The demonstration is aimed at a proposed Merchant Discount Rate (MDR) that would impose a 0.4% levy on selected UPI transactions.

Why traders are mobilising

Bodies such as the Delhi Vyapar Mahasangh and the Federation of Delhi Trade Associations have called on shop owners to decline UPI payments for a single day, urging customers to pay with cash or alternative methods. Their objective is to highlight the extra cost pressure the new MDR could place on small and medium‑size enterprises that depend heavily on UPI.

The proposed MDR framework

According to the draft guidelines, any UPI transaction above ₹2,000 will attract a 0.4% MDR, slated to start on October 15. While the rate appears modest, merchants argue it translates into a concrete rise in operating costs, especially for high‑volume, low‑margin businesses.

Mixed reactions within the trade community

Not every merchant federation backs the boycott. The Confederation of All India Traders (CAIT) clarified that it has not issued a nationwide “No UPI Day” directive, and several Delhi‑based groups remain undecided.

In addition, the All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) withdrew their earlier support after talks with Finance Minister Nirmala Sitharaman, adding further nuance to the debate.

What shoppers can expect on October 2

For consumers, the situation will likely be uneven. Some retailers may continue to accept UPI, while others will request cash, cards, or other digital wallets. Shoppers heading to markets should be ready for a mix of payment options depending on each merchant’s stance.

Looking ahead

The controversy underscores how swiftly policy changes can ripple through India’s dynamic digital‑payment ecosystem. As the October 15 deadline looms, both the government and trade bodies will be watching closely to see whether the protest gains momentum or fades away.